Extraordinary Endeavors in Turbulent Times: Asian Innovation, Inclusion, and Impact during COVID-19

ASIA BUSINESS COUNCIL HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY 2 5 DatVietVAC Group Holdings (Vietnam) Extraordinary Endeavors in Turbulent Times Vietnam’s Over-the-Top (OTT) Market From a commercial perspective, VieON seems well placed to capture the opportunity in Vietnam’s rapidly growing OTT market, where total revenue was projected to reach approximately $105 million in 2020 and rise at a compound annual growth rate of 9.4 percent through 2024. 2 Vietnam’s current GDP per capita is approximately $2,700, and Thanh believes that once GDP per capita reaches around $3,500, consumer spending will significantly increase, as was the case elsewhere in Asia. In other words, Vietnam appears to be at an inflection point in terms of OTT adoption, and a market-leading service could potentially see growth curves comparable to other markets such as India and China. But growth in OTT still requires a few other factors. In addition to increases in GDP per capita, also important are growth in access to digital payments and stricter controls over piracy. Pirated content remains a big issue in Vietnam. 3 But the Vietnamese government had already taken some significant steps to shut down illegal websites prior to VieON’s launch. 4 For example, Vietnam’s Cybersecurity Law was passed in 2018, followed by new regulations in 2020 on penalties for Intellectual Property (IP)-specific online violations, and a new practice of blocking access to pirate websites. 5 Just like in other markets, where consumers have moved from pirated low- quality content to a paid, high-quality user experience, Thanh believes that Vietnam will also make this transition. The higher video quality and superior user experience provided by platforms like VieON are factors that would encourage viewers to use legal channels. Thanh also remarked that the VieON subscription fee is only 66,000 dong ($2.85) per month, which is the same price as a bubble tea or a cup of coffee in beverage chains in Vietnam, and a fair price to pay for the convenience of a content service. Transformation of Internal Operations Internally, the COVID-19 crisis has forced DatVietVAC to take a closer look at different aspects of the company’s operations, organization, and processes to track progress. The company could no longer operate like before when meetings took place in face-to-face settings. To respond to the need to work digitally, DatVietVAC’s IT department worked to adopt new tools for use, while each department began to set up daily meetings and shared folders so people could work from home. Our peoples’ mindset became that of a member of a digital start-up rather than a 26-year- old media company, and as a result, our innovation is stronger than ever. Our leaders are now highly encouraged to aim for speed over elegance, take decisive actions with courage based on imperfect information, and embrace the long view...